Thông tư 24/2025/TT-BTC hướng dẫn việc tính hao mòn, trích khấu hao tài sản kết cấu hạ tầng thủy lợi do Bộ trưởng Bộ Tài chính ban hành

CIRCULAR

GUIDING CALCULATION OF VALUE REDUCTION AND PROVISION FOR DEPRECIATION OF IRRIGATION INFRASTRUCTURE ASSETS

Pursuant to the Law on Management and Use of Public Property dated June 21, 2017;

Pursuant to the Law on amendment to the Law on Securities, the Law on Accounting, the Law on Independent Audit, the Law on State Budget, the Law on Management and Use of Public Property, the Law on Tax Administration, the Law on Personal Income Tax, the Law on National Reserve, and the Law on Administrative Penalties dated November 29, 2024;

Pursuant to Decree No. 08/2025/ND-CP dated January 9, 2025 of the Government on management, use, and operation of irrigation infrastructure assets;

Pursuant to Decree No. 29/2025/ND-CP dated February 24, 2025 of the Government on functions, tasks, powers, and organizational structures of Ministry of Finance;

At request of the Director of Department of Public Asset Management;

The Minister of Finance promulgates Circular guiding calculation of value reduction and provision for depreciation of irrigation infrastructure assets.

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SCOPE AND REGULATED ENTITIES

Article 1. Scope

1. This Circular guides calculation of value reduction and provision for depreciation for irrigation infrastructures that are fixed assets under Clause 2 Article 3 hereof (hereinafter referred to as “irrigation infrastructure assets”) funded and delegated to agencies, entities, and enterprises under Clause 1 Article 2 hereof for management by the Government.

2. In respect of irrigation infrastructure assets delegated to enterprises for management in form of state capital in enterprises, management and provision for depreciation shall conform to regulations of the law on management, use, and provision for depreciation of fixed assets applicable to enterprises; shall not be regulated by this Circular.

3. In respect of land area attached to irrigation structures, only monitoring of asset list shall be implemented; monitoring and accounting of asset values shall not be implemented.

4. This Circular does not regulate cases detailed under Clause 2 Article 1 of Decree No. 08/2025/ND-CP dated January 9, 2025 of the Government on management, use, and operation of irrigation infrastructure assets.

Article 2. Regulated entities

1. Calculation of value reduction and provision for depreciation of irrigation infrastructure assets under this Circular apply to agencies, entities, and enterprises assigned to manage, operate irrigation infrastructure assets, including:

a) Public service providers;

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c) Enterprises of which 100% charter capital is held by the State assigned to manage, operate irrigation infrastructure assets without calculation of state capital in enterprises.

2. Other agencies, entities related to calculation of value reduction and provision for depreciation of irrigation infrastructure assets.

Chapter II

IDENTIFYING STANDARDS, MONITORING PRINCIPLES OF IRRIGATION INFRASTRUCTURE ASSETS

Article 3. Identifying standards of irrigation infrastructure assets

1. Identification of irrigation infrastructure assets

a) Irrigation infrastructure asset that is structurally independent shall be identified as an asset;

b) A system of irrigation infrastructure assets consisting of individual assets connected to one another to perform certain functions where the lack of any component therein renders the entire system inoperable shall be identified as an asset.

Where irrigation infrastructure asset is a system delegated to multiple agencies, entities, and enterprises for management and operation, individual assets assigned to each agency, entity, and enterprise shall be considered an asset.

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a) They have minimum useful life of 1 year; and

b) They have minimum original price of 10.000.000 VND.

Article 4. Monitoring principles of irrigation infrastructure assets

1. Each irrigation infrastructure asset deemed a fixed asset under Article 3 hereof shall correspond to an entry in accounting logbook. Irrigation infrastructure asset accounting shall adequately reflect and record information pertaining to original price, remaining value, value reduction or depreciation of assets.

2. Agencies, entities, and enterprises assigned to manage, operate irrigation infrastructure assets have the responsibility:

a) to keep record of all irrigation infrastructure assets that they are assigned to manage in accordance with accounting laws;

b) to perform asset inventory on an annual basis; perform general inventory in accordance with decisions of competent agencies, competent persons; adjust accounting data in case of any discrepancy during inventory while ensuring that data on accounting logbook are consistent with actual data;

c) to produce declaration reports, reports on use of irrigation infrastructure assets under Article 26 of Decree No. 08/2025/ND-CP and relevant law provisions.

3. In respect of irrigation infrastructure assets that are no longer in use and of which value reduction has not been fully calculated or which has not been fully depreciated as per the law, agencies, entities, and enterprises assigned to manage the assets shall continue to manage, monitor, and maintain assets as per the law and calculate value reduction, make provision for depreciation in accordance with this Circular until law-compliant actions are taken.

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Where irrigation infrastructure assets have had value reduction fully calculated or have fully depreciated and later are subject to changes to original price in accordance with Clause 5 Article 5 hereof, calculation of value reduction and provision for depreciation shall be required for the remaining useful life (if any) after original price is changed.

5. Where right to operate irrigation infrastructure assets is leased, agencies and entities assigned to manage and operate assets shall continue to manage, monitor, calculate value reduction, and make provision for depreciation in accordance with this Circular during lease term.

6. Where right to operate irrigation infrastructure assets is temporarily transferred, during the transfer period, agencies and entities assigned to manage, operate the assets (the transferors):

a) have the responsibility to monitor and oversee performance of obligations of the receivers in accordance with regulations of the law and contracts for term transfer of asset operating right;

b) shall not calculate value reduction, make provision for depreciation in accordance with this Circular; monitor original prices of assets recorded on the date of transfer in accounting logbook and present in financial statements in accordance with applicable accounting regulations;

c) receive assets in accordance with contracts for term transfer of asset operating right and regulations of the law, re-identify original prices, remaining prices of assets in order to manage, use, calculate value reduction, and make provision in accordance with Decree No. 08/2025/ND-CP and this Circular upon expiry of transfer period.

Chapter III

ORIGINAL PRICES, VALUE REDUCTION, REMAINING VALUE OF IRRIGATION INFRASTRUCTURE ASSETS

Article 5. Determination of original prices of irrigation infrastructure assets

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a) In respect of irrigation infrastructure assets under monitoring and recording in accounting logbook, original prices of assets shall be the original prices monitored and recorded in accounting logbook;

b) In respect of irrigation infrastructure assets that are not monitored or recorded in accounting logbook:

b1) Where irrigation infrastructure assets have been settled as per the law, settlement value on paper shall be used for determining original prices for recording in accounting logbook;

b2) Where information on original prices and remaining value or settlement value of irrigation infrastructure assets is not available, prices of sample structures decided by the Minister of Agriculture and Environment (if any) shall be used for the purpose of determining original prices of equivalent irrigation infrastructure assets.

Where prices of sample structures are used for determining original prices of equivalent irrigation infrastructure assets, the original prices shall only be used for monitoring, recording in accounting logbook, asset declaration report in order to access National database on irrigation infrastructure assets;

b3) Where basis for determining original prices of irrigation infrastructure assets in accordance with Point b1, Point b2 is insufficient and where basis for determining when the assets are used and determining purchase prices of assets of the same type or construction value (construction norms) of assets of equivalent grade, class, capacity established either via construction or procurement on the date on which the assets are used, original prices of the assets shall be determined as follows:

Original prices of irrigation infrastructure asset

=

Purchase price of asset of the same type or construction value (construction norms) of assets of equivalent grade, class, capacity on the date on which the assets are used

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- Purchase price of asset of the same type (applicable to assets that are not houses, constructions, architectural items) are selling prices of new assets on the market on the date on which the assets are used;

- Construction value (construction norms) of assets of equivalent grade, class, capacity established either via construction or procurement applicable to assets that are houses, constructions, architectural items (including houses, constructions, architectural items established via procurement) shall be determined as follows:

Construction price of asset

=

Construction unit price of asset of equivalent grade, class, capacity declared by local provincial People’s Committee for application on the date on which the asset is used

x

Construction area/volume/quantity/other criteria (if any) of the asset

+

Value of other elements attached to structure/work items determined in accordance with regulations of presiding Ministry (or specific regulations of local government) on the date on which the asset is used

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b4) Where basis for determining original prices of irrigation infrastructure assets in accordance with Point b1, Point b2, and Point b3 under this Clause is not sufficient, agencies and entities assigned to manage irrigation infrastructure assets shall hire valuating enterprises to advise about determining value of assets in accordance with Vietnamese Valuation Standards in order to re-evaluate remaining value and time for calculating remaining value reduction of asset. The use of valuation certificate, valuation report shall conform to price laws.

On the basis of valuation certificates and valuation reports provided by valuating enterprises and characteristics, conditions of irrigation infrastructure assets, agencies and entities and enterprises in possession of assets shall determine original prices of irrigation infrastructure assets as follows:

Original prices of irrigation infrastructure asset

=

Re-evaluated value of asset

x

Time period for calculating value reduction/making provision for depreciation of asset in accordance with Article 8 hereof (years)

Time period for calculating remaining value reduction/making provision for remaining depreciation of assets (years)

2. Original prices of irrigation infrastructure assets built and used after the effective date of Decree No. 08/2025/ND-CP shall be settlement value approve by competent authorities, competent persons in accordance with construction and investment laws. Special cases are prescribed as follows:

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Value derived from settlement inspection;

Value requested for settlement approval;

Value determined in accordance with Record of A-B Commissioning (The sum of contract settlement value spreadsheets between project developers and contractors);

Value of the latest approved or amended estimates (where project estimates are amended);

Value of the latest approved or amended total investment (where total investment is amended).

Where competent authorities or competent persons approve settlement, agencies and entities and enterprises assigned to manage irrigation infrastructure assets shall amend value recorded in accounting logbook in accordance with approved settlement value in order to amend accounting logbook and record assets in accordance with accounting laws;

b) Where projects consist of multiple work items and assets (multiple entries in asset accounting logbook) which are not separately, individually recorded or settled, handle individual work item and asset in order to record in accounting logbook on the principle where direct costs related to a fixed asset are recorded in entries of said assets; general costs related to multiple fixed assets are recorded proportionally based on ratio between direct costs affiliated to individual fixed asset and total direct costs of all fixed assets;

c) Where projects consist of multiple work items and assets (multiple entries in asset accounting logbook) which are individually invested and commissioned, work items and assets that have been invested, build, commissioned, and used shall be recorded in accounting logbook under corresponding entries from the date on which they are used. Original prices recorded in accounting logbook shall be temporary original prices under Point a of this Clause.

Where competent authorities and competent persons approve project settlement, agencies, organizations, entities, and enterprises shall amend temporary original prices in accordance with approved settlement value in order to amend accounting logbook and record assets as per the law; where work items and assets are not recorded individually, agencies, organizations, entities, and enterprises shall allocate settlement value approved by competent persons and competent agencies to each work item and asset in order to record in accounting logbook, amend accounting logbook (in respect of work items and assets recorded in accounting logbook) on the basis of appropriate criteria (such as: Construction area, quantity, detail estimates of individual work items, assets, etc.);

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3. Original prices of irrigation infrastructure assets received via assignment or transfer from effective date of Decree No. 08/2025/ND-CP shall be determined as follows:

Original prices of transferred or assigned irrigation infrastructure assets

=

Original prices on record of asset delivery and assignment

+

Fees and charges in accordance with regulations of the law on fees and charges (if any)

+

Other costs (if any)

Where:

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a1) In respect of irrigation infrastructure assets that have been monitored and recorded in accounting logbook, original prices on record of asset assignment and delivery shall be original prices of irrigation infrastructure assets that have been monitored and recorded in accounting logbook of agencies, entities, and enterprises in possession of assigned, transferred assets;

a2) In respect of irrigation infrastructure assets that have not been monitored and recorded in accounting logbook, agencies, entities, and enterprises in possession of transferred, assigned assets have the responsibility to determine original prices of the assets in accordance with corresponding regulations under Clause 1, Clause 2 of this Article before requesting competent authorities, competent persons to decide asset transfer, delivery.

b) Other costs (if any) shall be reasonable costs directly related to reception of assigned, delivered irrigation infrastructure assets and incurred by agencies, entities, and enterprises that receive irrigation infrastructure assets until the date on which the assets are used. Where general costs are required for multiple irrigation infrastructure assets, agencies, entities, and enterprises shall allocate expenditure for individual assets in accordance with appropriate criteria (such as: construction area, volume, quantity, value of derived assets, general costs, etc.).

4. In respect of irrigation infrastructure assets that are in excess via the process of inventory and examination, depending on origin and time of use, original prices of these assets shall be determined in accordance with Clause 1, Clause 2, and Clause 3 of this Article.

5. In respect of irrigation infrastructure assets received by agencies, entities, and enterprises after expiry of temporary transfer of use right in accordance with Point c Clause 6 Article 4 hereof, original prices of irrigation infrastructure assets shall be reset to original prices recorded on the date on which the transfer occurs in accordance with contracts for temporary transfer of asset use right plus investment in upgrade, expansion (if any) according to projects approved by competent authorities.

6. Changing original prices of irrigation infrastructure assets

Original prices of irrigation infrastructure assets shall be changed:

a) For the purpose of re-evaluating assets during general inventory according to decision of the Prime Minister;

b) For the purpose of upgrading, expanding assets in accordance with projects approved by competent authorities, competent persons;

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d) For the purpose of installing an additional part or parts of irrigation infrastructure assets except for cases where such installation serves replacement purposes during maintenance;

dd) In case the assets are partially missing or severely damaged by natural disasters, other force majeure, or other irregular events (unless the assets have been restored either via insurance or compensation of relevant organizations, individuals).

7. Original prices of irrigation infrastructure assets under this Article serve as the basis for recording in accounting logbook, calculating value reduction, making provision for depreciation of irrigation infrastructure assets.

Article 6. Determining original prices of irrigation infrastructure assets in case of changes to original prices of assets

Where original prices of irrigation infrastructure assets are changed in accordance with Clause 6 Article 5 hereof, agencies and entities assigned to manage irrigation infrastructure assets shall file records stating reasons for (cases of) original price change; re-evaluate original price criteria of irrigation infrastructure assets which serve as the basis for determining value reduction expenses and remaining value of the assets in order to amend accounting logbook, implement management, calculate value reduction, and make provision for depreciation in accordance with this Circular.

Re-evaluation of original prices of irrigation infrastructure assets in case of changes to original prices shall be implemented as follows:

1. In respect of cases detailed under Point a Clause 6 Article 5 hereof, original prices of irrigation infrastructure assets shall be re-evaluated in accordance with guidelines of competent authorities, competent persons pertaining to asset inventory and re-evaluation.

2. In respect of cases detailed under Point b Clause 6 Article 5 hereof, original prices of irrigation infrastructure assets shall equal currently recorded original prices plus the additional value caused by upgrade, expansion of irrigation infrastructure assets. In this case, the additional value provided by upgrade, expansion of irrigation infrastructure assets shall be settlement value approved by competent authorities and competent persons as per the law; where settlement has not been approved by competent authorities and competent persons, agencies and entities assigned to manage irrigation infrastructure assets shall record the additional value provided by upgrade, expansion of irrigation infrastructure assets in accounting logbook from the date on which the assets are used. The additional value in original prices recorded in accounting logbook shall be selected in the following order of priority:

Value derived from settlement inspection;

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Value determined in accordance with Record of A-B Commissioning (The sum of contract settlement value spreadsheets between project developers and contractors);

Value of the latest approved or amended estimates (where project estimates are amended);

Value of the latest approved or amended total investment (where total investment is amended).

Where competent authorities and competent persons approve estimates, agencies and entities assigned to manage irrigation infrastructure assets shall amend the additional value in original prices in accounting logbook on the basis of approved settlement value in order to amend accounting logbook and implement asset accounting as per the law.

Where projects approved by competent authorities or competent persons facilitate construction, upgrade, or expansion of other assets (that are not irrigation infrastructure assets and where the projects include investment in irrigation infrastructure assets), the additional value provided by upgrade, expansion of irrigation infrastructure assets shall be the investment in irrigation infrastructure assets in settlement value approved by competent authorities and competent persons.

3. In respect of dismantlement of a part or parts of irrigation infrastructure assets or liquidation of parts of irrigation infrastructure assets in accordance with Point c Clause 6 Article 5 hereof, original prices of irrigation infrastructure assets shall be re-evaluated to be equal to currently recorded original prices less value of parts of irrigation infrastructure assets dismantled or liquidated plus reasonable costs directly related to dismantlement, liquidation incurred by agencies and entities assigned to manage irrigation infrastructure assets until the date on which dismantlement, liquidation is completed.

Wherein value of dismantled or liquidated parts of irrigation infrastructure assets shall be determined as follows:

a) Where dossiers determining buying price and settlement value/estimate value of dismantled and liquidated parts of irrigation infrastructure assets are available, the value of said assets shall be determined by buying price, settlement value/estimate value of the assets;

b) Where dossiers specified under Point a of this Clause are not available and where original prices of irrigation infrastructure assets are allocated to dismantled and liquidated parts of irrigation infrastructure assets under appropriate criteria (such as: construction area, quantity, buying price, estimates, etc.), value of the dismantled and liquidated parts shall be determined by the allocated value;

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Where buying price of dismantled, liquidated parts of irrigation infrastructure assets on the market at the time in which the assets are used cannot be determined, agencies and entities assigned to manage irrigation infrastructure assets shall hire valuating enterprises to determine value of dismantled, liquidated parts of irrigation infrastructure assets in order to determine original prices of the assets following dismantlement and liquidation.

The use of valuation certificates and valuation report of valuating enterprises shall conform to price laws.

4. Where additional parts of irrigation infrastructure assets are installed in accordance with Point d Clause 6 Article 5 hereof, original prices of irrigation infrastructure assets shall be re-evaluated to be equal to currently recorded original prices plus additional value provided by additional installation of a part or parts of irrigation infrastructure assets plus reasonable costs directly related to the installation incurred by agencies and entities assigned to manage irrigation infrastructure assets until the date on which installation completes.

Wherein the additional value provided by additional installation of a part or parts of irrigation infrastructure assets correspond to value of the installed assets and are determined in accordance with cases detailed under Article 5 hereof.

5. In respect of cases detailed under Point dd Clause 6 Article 5 hereof, agencies in charge of asset management shall hire valuating enterprises to evaluate and determine remaining value, time period for calculating value reduction, making provision for depreciation of assets (including expenditure on hiring valuating enterprises) in a manner compliant with Article 8 hereof for damaged assets in order to file record of original price change. Original prices of irrigation infrastructure assets in this case shall be determined as follows:

Original prices of irrigation infrastructure asset

=

Re-evaluated value of asset

x

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Time period for calculating remaining value reduction/making provision for remaining depreciation of assets (years)

The use of valuation certificates and valuation report of valuating enterprises shall conform to price laws.

Article 7. Principles of calculating value reduction, making provision for depreciation of irrigation infrastructure assets

1. Irrigation infrastructure assets that are fixed assets delegated to agencies, entities, and enterprises for management and operation shall be subject to calculation of value reduction in accordance with this Circular except where cases detailed under Clause 2 or Clause 3 of this Article apply.

In respect of assets which agencies, entities, and enterprises receive from other agencies, entities, and enterprises in accordance with decision of competent authorities and competent persons in a year, calculation of value reduction in the year shall be implemented at agencies and entities that receive the assets;

2. Provision for depreciation of irrigation infrastructure assets shall be made where irrigation product and service fees incorporate depreciation costs, in part or in whole, into public irrigation service prices.

In respect of irrigation infrastructure assets assigned to public service providers that guarantee their own recurrent funding and management investment expenditure or public service providers permitted by competent authorities to incorporate depreciation costs into public irrigation service prices, calculation of value reduction and provision for depreciation shall be implemented in the same manner applicable to enterprises operating in irrigation industry in accordance with corporate laws.

3. Agencies, entities, and entities assigned to manage, operate irrigation infrastructure assets shall not be required to calculate value reduction or make provision for depreciation in respect of:

a) Assets of which value reduction has not been fully calculated or provision for depreciation has not been fully made are damaged beyond repair;

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c) Irrigation infrastructure assets that are under temporary transfer of use right.

4. Calculation of value reduction and provision for depreciation of irrigation infrastructure assets

a) Implementation shall be carried out on the basis of the following criteria:

a1) Type of asset (Complete system of irrigation infrastructure assets/individual assets);

a2) Time period for calculating value reduction/making provision for depreciation of irrigation infrastructure assets;

a3) Rate of value reduction, depreciation;

a4) Accounting period in accordance with applicable accounting regulations.

b) On the basis of incorporation of asset depreciation costs into irrigation product and service prices, agencies, entities, and enterprises shall determine methods for calculating value reduction, making provision for depreciation of irrigation infrastructure assets as follows:

b1) In respect of irrigation infrastructure assets where depreciation costs are not incorporated into irrigation product and service prices, agencies, entities, and enterprises assigned to manage, operate irrigation infrastructure assets shall calculate overall value reduction;

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b3) In respect of irrigation infrastructure assets where depreciation costs are partially incorporated into irrigation product and service prices, agencies, entities, and enterprises assigned to manage, operate irrigation infrastructure assets shall both calculate value reduction and make provision for depreciation;

5. Calculation of value reduction and provision for depreciation of irrigation infrastructure assets shall be implemented as follows:

a) Calculation of value reduction shall be implemented once per year in December before closing accounting logbook;

b) In respect of irrigation infrastructure assets of which provision for overall depreciation is made, provision for depreciation shall be made on a monthly basis;

c) In respect of irrigation infrastructure assets that are subject to both calculation of value reduction and provision for depreciation, calculation of depreciation and provision for depreciation shall be implemented on a monthly basis.

Article 8. List of assets, time period for calculating value reduction and making provision for depreciation, rate of depreciation

1. Where subject of accounting logbook is a system

No.

Type of asset

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Rate of value reduction, depreciation (%/year)

Complete irrigation infrastructure system

20 - 80

5 – 1,25

2. Where subject of accounting logbook is individual asset

No.

Type of asset

Time period for calculating value reduction/making provision for depreciation (years)

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1

Headquarters, administrative building, management station (excluding headquarters, office building of agency, entity, enterprise assigned to oversee irrigation infrastructure assets and located outside of perimeter of irrigation infrastructures)[1]

- Class I

50

2

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25

4

- Class III

20

5

- Class IV

15

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2

Water reservoir, dam[2]

- Special class

60

1,67

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50

2

- Class II

40

2,5

- Class III

25

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- Class IV

20

5

3

Sewers

5 - 25

20 - 4

4

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15 - 50

6,67 - 2

5

Water transportation system

15 - 20

6,67 - 5

6

Dyke

10 - 30

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7

Irrigation embankment

15 - 30

6,67 - 3,33

8

Monitoring device

5 - 10

20 - 10

9

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8 - 20

12,5 - 5

10

Marker post, sign

8 - 10

12,5 - 10

11

Other structure and architectural element for management, operation of irrigation structure

8 - 10

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3. On the basis of size, class, grade of structures, socio-economic characteristics of individual administrative division; on the basis of time period for calculating value reduction/making provision for depreciation and rate of value reduction, depreciation under Clause 1 and Clause 2 of this Article; on the basis of request filed by agencies, entities, and enterprises assigned to manage and operate irrigation infrastructure assets and superiors thereof (if any), irrigation authorities affiliated to the Ministry of Agriculture and Environment shall request the Ministry of Agriculture and Environment, provincial-level irrigation authorities shall request provincial People's Committees to decide or decentralize authority to decide time period for calculating value reduction/making provision for depreciation and specific rate of value reduction, depreciation for individual system and standalone asset (subject of accounting logbook) for systems and assets of which time period for calculating value reduction/making provision for depreciation and specific rate of value reduction, depreciation are compliant with Clause 1, Clause 2 of this Article.

Article 9. Methods for calculating value reduction, depreciation

1. Value reduction, depreciation expenses:

a) In respect of irrigation infrastructure where only value reduction calculation is implemented, annual value reduction expenses of each irrigation infrastructure asset shall be calculated by:

Annual value reduction expenses of each irrigation infrastructure asset

=

Original prices of irrigation infrastructure asset

x

Rate of value reduction (%/year)

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- Original prices of irrigation infrastructure assets shall be determined in accordance with Article 5 hereof;

- Rate of value reduction shall be determined in accordance with Article 8 hereof.

b) In respect of irrigation infrastructure assets where only provision for depreciation is made, annual depreciation expenses of individual irrigation infrastructure asset shall be calculated using the formula below:

Annual depreciation expenses of irrigation infrastructure assets

=

Original prices of assets x Rate of depreciation (%/year)

12 months

Where:

- Original prices of assets shall be determined in accordance with Article 5 hereof;

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c) In respect of irrigation infrastructure assets where both calculation of value reduction and provision for depreciation are made, calculation monthly value reduction expenses and depreciation expenses of each irrigation infrastructure asset of shall be made as follows:

c1) Depreciation expenses shall equal depreciation expenditure recorded in irrigation product and service fees during period in which provision for depreciation of irrigation infrastructure assets is made.

c2) Value reduction expenses shall be calculated using the formula below:

Value reduction expenses

=

Value reduction expenses calculated in accordance with Point a of this Clause

-

Depreciation expenses under c1

12 months

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a) In respect of irrigation infrastructure assets where only value reduction is calculated, accumulated value reduction quantities shall be calculated using the formula below:

Accumulated value reduction of asset until the year (n)

=

Accumulated value reduction of asset as of the year (n-1)

+

Increase in accumulated value reduction of asset in the year (n)

-

Reduction in accumulated value reduction of asset in the year (n)

b) In respect of irrigation infrastructure assets where only provision for depreciation is made, accumulated depreciation quantities shall be calculated using the formula below:

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=

Accumulated depreciation of asset until the accounting period (t-1)

+

Increase in accumulated depreciation of asset in the accounting period (t)

-

Reduction in accumulated depreciation of asset in the accounting period (t)

c) In respect of irrigation infrastructure assets where both calculation of value reduction and provision for depreciation are made, accumulated value reduction and depreciation quantities shall be calculated using the formula below:

Accumulated value reduction + depreciation until accounting period (t)

=

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+

Increase in accumulated value reduction + depreciation of asset in the accounting period (t)

-

Reduction to accumulated value reduction + depreciation of asset in the accounting period (t)

3. Value reduction and depreciation expenses for the last year/last accounting period of useful life of irrigation infrastructure assets:

a) In respect of irrigation infrastructure assets where only calculation of value reduction is made, value reduction of the final year in useful life of the assets shall be calculated using the formula below:

Value reduction of assets in the final year

=

Original prices of asset

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Accumulated value reduction of asset until the year before the final year determined in accordance with Point a Clause 2 of this Article

b) In respect of irrigation infrastructure assets where only provision for depreciation is made, provision for depreciation for the final accounting period of useful life of the asset shall be calculated using the formula below:

Depreciation of assets for the final accounting period

=

Original prices of asset

-

Accumulated depreciation of asset until the year before the final accounting period (according to Point b Clause 2 of this Article)

c) In respect of irrigation infrastructure assets where both calculation of value reduction and provision for depreciation are made, calculation of value reduction/provision for depreciation for the final accounting period of useful life of asset shall be made using the formula below:

Value reduction/depreciation expenses for the final accounting period

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Original prices of asset

-

Accumulated value reduction/depreciation of asset until before the final accounting period (according to Point c Clause 2 of this Article)

Article 10. Remaining value of irrigation infrastructure assets

1. Remaining value of irrigation infrastructure assets where only calculation of value reduction is made shall be determined using the formula below:

Remaining value of irrigation infrastructure assets as of December 31 of the year (n)

=

Original prices of asset

-

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2. Remaining value of irrigation infrastructure assets where only provision for depreciation is made shall be determined using the formula below:

Remaining value of irrigation infrastructure assets as of December 31 of the year (n)

=

Original prices of asset

-

Accumulated depreciation of asset until December 31 of the year (n)

3. Remaining value of irrigation infrastructure assets where both calculation of value reduction and provision for depreciation are made shall be calculated using the formula below:

Remaining value of irrigation infrastructure assets as of December 31 of the year (n)

=

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-

Accumulated value reduction of asset until December 31 of the year (n)

+

Accumulated depreciation of asset until December 31 of the year (n)

Chapter IV

IMPLEMENTATION

Article 11. Transition clause

1. Where irrigation infrastructure assets have subject to calculation of value reduction in accordance with Circular No. 75/2018/TT-BTC dated August 17, 2018 of the Ministry of Finance and where list of assets subject to calculation of value reduction/provision for depreciation under this Circular are amended relative to Circular No. 75/2018/TT-BTC, starting from the fiscal year of 2025, agencies, entities, and enterprises assigned to manage irrigation infrastructure assets shall calculate value reduction and make provision for depreciation in accordance with this Circular.

2. Where irrigation infrastructure assets have not subject to calculation of value reduction or provision for depreciation in accordance with Circular No. 75/2018/TT-BTC, agencies, entities, and enterprises assigned to manage irrigation infrastructure assets shall calculate value reduction for the entire duration of asset use in years until the end of 2024 fiscal year at depreciation rate under Circular No. 75/2018/TT-BTC and include the results in value reduction, depreciation expenses of the assets in the fiscal year of 2025.

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1. This Circular comes into force from the date of signing and is applied from the beginning of fiscal year of 2025.

2. Regulations related to irrigation infrastructure assets and regulations containing the phrase “thủy lợi” (irrigation) in the main text and Section V of Appendix attached to Circular No. 75/2018/TT-BTC dated August 17, 2018 of the Ministry of Finance shall be annulled from the effective date hereof.

3. Where legislative documents referred to under this Circular are amended or superseded, the new documents shall prevail.

4. The Ministry of Agriculture and Environment and People’s Committees of provinces and central-affiliated cities have the responsibility to coordinate calculation of value reduction and provision for depreciation of irrigation infrastructure assets in accordance with this Circular./.

PP. MINISTER
DEPUTY MINISTER




Bui Van Khang

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[2] Structure class according to irrigation laws.